ScheduleRT-1: ScheduleRT-1 (2024)
Wisconsin · Wisconsin DOR · Used for tax years 2024
Wisconsin Schedule RT-1 is a statement of disallowed related entity expenses. It identifies the entities involved and reports disallowed interest, rent, intangible expenses, and management fees, along with where the recipient reported the corresponding income.
Who files this form
The entity that paid, accrued, or incurred the disallowed related-entity expense completes Part I and gives the schedule to the related entity to which the expense was paid, accrued, or incurred.
The related entity named in Part I, item B completes Part II. If it claims the corresponding subtraction modification, it must file Schedule RT-1 with its Wisconsin return to support that subtraction.
What you'll need
Have the following information ready:
- The name and taxpayer identification number, either FEIN or SSN, for each entity.
- The taxpayer type for the entity that paid, accrued, or incurred the expense.
- That entity’s taxable year beginning and ending dates for the year the expenses were disallowed.
- The amounts of disallowed interest, rent, intangible expenses, and management fees.
- For Part II, the line numbers on the recipient’s pro forma federal income tax return where it reported the income eligible for the subtraction.
How to file
- The entity that paid, accrued, or incurred the expense completes Part I, items A through D. Add the amounts on lines 1 through 4 and enter the total on line 5.
- Give the schedule to the related entity named in Part I, item B.
- That related entity completes Part II, item A, identifying the pro forma federal return lines where it reported the eligible income.
- To support the subtraction modification, file the schedule with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6, as applicable.
Common mistakes
- Leaving the schedule out of the Wisconsin return. The form says you must file it with your return to support the subtraction modification.
- Claiming the subtraction without including the income in Wisconsin income. The form makes the subtraction conditional on having included that income.
- Skipping the instructions. The form reminds you to read the instructions before filling in the schedule.
Questions people ask
What expenses does Schedule RT-1 report?
It reports disallowed related-entity interest expense, rent expense, intangible expense, and management fees.
Does the same entity complete both parts?
No. The entity that paid, accrued, or incurred the expense completes Part I. The related entity named in Part I, item B completes Part II.
When can the related entity claim the subtraction?
If it included the income in its Wisconsin income, it may claim the corresponding subtraction for the taxable year that includes the ending date shown in Part I, item C.
What goes in Part II, item A?
Enter the line numbers on your pro forma federal income tax return where you reported the eligible income for the year you are eligible to claim the subtraction.